Renewal of additional sales tax for Ulster County in 2015 could be problematic (video)

KINGSTON >> Ulster County officials say even if the county begins levying its additional 1 percent sales tax on Feb. 1,they may have to go through the same approval process later this year to continue the tax in 2015.

Deputy County Executive Ken Crannell told members of the county Legislature’s Ways and Means Committee on Wednesday that the state legislation written by Assemblyman Kevin Cahill is so flawed that the state Legislature will need to meet again so the extra tax can be collected again next year.

Cahill, D-Kingston, has said there is nothing wrong with his bill.

The bill allows the county to reinstate the sales tax effective Feb. 1, but only for 2014. In order for the county to be able to continue to charge the sales tax in 2015, the bill requires the county to not only adopt a resolution accepting full responsibility for the local cost of the Safety Net welfare program but to state that funding for the takeover is included in the 2015 budget.

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The problem, Crannell said, is the state Department of Taxation and Finance requires 90-day notice of any changes.

While the state tax commissioner does have the ability to reduce that requirement to 30 days, the way the bill is written, Crannell said, the county can’t even meet that requirement because it doesn’t adopt its budget until the first week in December.

“The county attorney and I have had three conferences with the state tax department this week trying to figure out a way to work with this language,” Crannell said. “The tax department is telling us that for the second year of this enactment, the flaws in this bill are so great they’ve got to be revisited in Albany.”

Last spring, Cahill blocked the extension of the county’s additional 1 percent sales tax when he introduced a series of bills that placed conditions on it. Faced with competing versions of the plan by Cahill and Assemblyman Frank Skartados, D-Milton, who introduced a bill that carried no conditions, the Assembly took no action before adjourning.

That move resulted in the sales tax expiring on Nov. 30. County Executive Michael Hein said the county loses $1.9 million in revenue each month it is unable to levy the additional 1 percent sales tax.

About the Author

Since 1990, Patricia Doxsey has been a reporter for the Freeman, covering politics, crime, and government affairs. Reach the author at pdoxsey@freemanonline.com
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